Figuring out how much capital you need is one of the most important early decisions for a founder. If you raise too little, you risk running out of money before you hit meaningful milestones; if you raise too much too early, you give away more equity than necessary.
Here’s a step-by-step guide to assess your needs.
1. Define Milestones
- Why: Investors fund progress, not just survival. You need to know what goals you must achieve before your next round (or before reaching profitability).
- Examples of milestones:
- Build and launch…
